Solar Foods (SFOODS) H1 2024 earnings summary

Executive summary

• Factory 01 began operations in April 2024, marking a key milestone in scaling production and enabling commercialisation of Solein, with product launches in Singapore and GRAS status in the US.

• Completed first strategic period and entered a new phase focused on commercial scaling and profitability by 2030.

• Listed on Nasdaq First North in September 2024, achieving Green Equity Designation and expanding investor base.

• Raised €8.8 million in new capital and received €9.3 million in grants, strengthening financial position.

• Won NASA Deep Space Food Challenge, opening opportunities in space and specialized markets.

Financial highlights

• Ended H1 2024 with a cash balance of €24.2 million, up from €16.7 million a year earlier, providing at least 12 months of runway.

• Operating loss for H1 2024 was €4.4 million, up from €3.4 million year-over-year; net loss was €5.7 million, up from €4.0 million.

• Total funding base of €106 million, including equity, loans, and IPCEI grants; €76.4 million in IPCEI grants yet to be received.

• Operating cash flow positive at €4.2 million, driven by significant grant inflows.

• Investments in tangible and intangible assets totaled €4.5 million, mainly in capitalized development expenditure.

Outlook and guidance

• Focus on commercialising Solein in the US following GRAS status, with sales expected to start by year-end 2024.

• Factory 02 planned to increase Solein production capacity by 50–100x compared to Factory 01, with CapEx estimated at €150–420 million.

• Profitability expected once full capacity of new large-scale factories is achieved.

• Working capital sufficient for at least 12 months as of June 2024.

• New strategy to be announced later in 2024, focusing on global scaling and commercialization.